Five tips for getting out of debt
Being in debt is a fact of life for many of us, particularly if you have just graduated or bought a house.
But your debt should not reach levels that cause you stress because you are unable to meet your repayments. Here are some hints and tips to help you keep a handle on your debts.
Create an inventory of your financial situation
Make an honest, comprehensive list of your debts and assets. List the debts with the highest interest payments. These are the ones to pay off first.
Make a list of your income and expenditure
Include all your monthly repayments. If your expenses are greater than your income, look at ways to cut expenses and raise income. Where you are earning more than you spend, allocate extras to pay off debts.
Contact creditors
If you find yourself in difficulty repaying your loans get in touch with your creditors as soon as possible and explain your situation. Many creditors will be able to work with you to draw up an affordable repayment plan.
Cash is king
Leave your credit and store cards at home when you go shopping. That way if you don't have the cash, you can't spend it.
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